Total earnings for Canadian investment dealers bounced back from the challenging third quarter to finish 2007 on solid ground, according to the Investment Industry Association of Canada (IIAC).

The Securities Industry Performance report for the fourth quarter, shows operating revenues amounted to $4.28 billion, an increase of 11% over the previous quarter. For the year, the industry delivered strong results that culminated in record performance.

“Despite the obstacles in 2007, notably volatile equity markets and unsettled credit conditions, the industry still delivered extraordinary returns for the year,” said Ian Russell, president and CEO, IIAC, in a release.

Most of the industry’s main business lines experienced growth in 2007, albeit at a more moderate pace than the year before. Strong mutual fund, fee based, and investment banking revenues highlighted the banner year. Proprietary trading was the only segment to miss the mark.

Catapulted by the results of a stellar first half, the securities industry posted a record operating profit for the year.

Performance in 2008 will depend on how quickly the trouble in the credit markets will subside, the IIAC says.